Software provider Bravura Solutions has revised its proposal to purchase specialist financial software provider, GBST.
Following discussions with the GBST CFO Matthew Walton and access to a confidentiality deed, Bravura is offering $2.72 per GBST share (67.9 million shares) in cash, totalling $184.7 million.
A previous offer made in April consisted of $2.50 per share and an alternative cash and scrip option, but has now taken that offer off the table.
“These initial due diligence materials have helped Bravura to better understand and confirm some key assumptions underpinning its strategic rationale of a potential acquisition of GBST and availability of potential synergies from combining the two businesses,” Bravura told shareholders.
Bravura expects the acquisition to be earnings per share accretive in the first full year of ownership.
GBST provides administration and transaction processing software for retail wealth management organisations along with global and regional investment banks. In June, it secured 10-year contract to deliver a back office transformation program for insurance and wealth management provider Canada Life UK, which is expected to add $50 million in revenue for GBST.
During the first half of FY19, Bravura revenue increased 24 per cent to $127.4 million while net profit after tax increased 15 per cent to $16.3 million.
Bravura has made a series of acquisitions throughout the years including companies such as Mutual Fund Technologies (MFT), Syscorp, Tacit, Essential Computer Systems, Rufus Software, AB Prodata, Garradin and GTAS.